Market News Archives - Cboe Blogs

  • Market News | Trader Talk | Trade Ideas | Aug 24, 2016, 11:15 AM

    The Buffett Put Trade - 2Q2016 Update

    The Buffett Put Trade - 2Q2016 Update

    Each quarter Berkshire Hathaway, like all investment firms, files their holdings with the SEC.  Most people scramble to see what stocks Warren Buffett has been adding to his portfolio.  I usually scramble as well, but I’m looking for something hardly discussed in the dozens of pages that make up Berkshire Hathaway’s 10-Q.  I go looking for an update on what I commonly call The Buffett Put Trade.  Back in April I wrote an explanation of what this trade is all about. [...]

  • Market News | Aug 22, 2016, 9:36 AM

    Buying a Breakout, Selling Breakdowns

    Buying a Breakout, Selling Breakdowns

    When a stock makes a big breakout or breakdown on some very heavy turnover, it catches the market's attention. We often feel regret and that we are late to the party, and that if we decide to jump on board then the stock will reverse course. That is the psychological negative of not understanding momentum, for it is at these moments that the best opportunity for gain often lie ahead. Stocks move over time, often long periods of time - yet our minds constantly think in the moment. This is a divergence[...]

  • Market News | VIX | Trader Talk | Trade Ideas | Aug 20, 2016, 7:42 PM

    Weekend Review - VIX Futures and Options - 8/15 - 8/19

    Weekend Review - VIX Futures and Options - 8/15 - 8/19

    VIX dropped a little as the equity market did a whole lot of nothing last week.  We retired the August contract on the open Wednesday morning and September took over as the front month.  With time to go to expiration (this is actually a five-week cycle) everyone seemed to notice the steep contango again.  What is interesting below is the behavior of the curve beyond October.  November and beyond gained a little ground despite all the contracts moving up in the pecking order of[...]

  • Market News | Trader Talk | Strategy | Trade Ideas | Aug 20, 2016, 2:00 PM

    Weekend Review - Volatility Indexes and ETPs - 8/15 - 8/19

    Weekend Review - Volatility Indexes and ETPs - 8/15 - 8/19

    For the second week in a row the S&P 500 Index related volatility indexes hardly budged. Three out of four were lower with the longest dated, VXMT, up slightly on the week. We’ve ranted and raved in various forums about how VVIX has been holding up despite a lower VIX. It was kind of like the last holdout for higher equity market related volatility until this past week when it took a 12% dive.  This puts VVIX closer to the lower end of the historical range. I guess[...]

  • Market News | Trader Talk | Strategy | Trade Ideas | Aug 20, 2016, 10:09 AM

    Weekend Review - Russell 2000 Options and Volatility - 8/15 - 8/19

    Weekend Review - Russell 2000 Options and Volatility - 8/15 - 8/19

    Sometimes I over personify the financial markets and when I saw that the Russell 2000 (RUT) easily extended the lead over the Russell 1000 (RUI) this week an Olympic themed situation popped into my head.  I saw the Russell 2000 as Usain Bolt giving a thumbs up as it easily moved farther ahead of the Russell 1000.  For the week RUT gained 0.60% while RUI was actually down by 0.01% which places the 2016 lead for RUT at just over 2% (8.88% vs. 6.86%). When VIX is low the ratio[...]

  • Market News | Aug 19, 2016, 1:17 PM

    The Weekly Options News Roundup – 8/19/2016

    The Weekly Options News Roundup – 8/19/2016

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX Index and volatility-related articles from print, broadcast, online and social media outlets. Markets Get Social Powers CBOE has partnered with Social Market Analytics (SMA) in the development of a suite of indexes that harness predictive signals from Twitter traffic to generate different “S-Factors” that gauge investor stock sentiment.  On Monday, the CBOE-SMA Large Cap Index (SMLC Index),[...]

  • Market News | Trader Talk | Trade Ideas | Aug 18, 2016, 1:27 PM

    Earnings Next Week - Aug 22 - Aug 26

    Earnings Next Week - Aug 22 - Aug 26

    There are just enough names to make things interesting next week.  As always the data below is based on the last three years of earnings results unless the ticker is in italics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.

  • Market News | Futures | Strategy | Aug 17, 2016, 1:14 PM

    Successful Launch for New SPX Monday-Expiring Weeklys Options

    Successful Launch for New SPX Monday-Expiring Weeklys Options

    On August 15 CBOE launched trading of the new S&P 500® Index (SPX) Monday-expiring Weeklys options. Daily trading volume for the new SPX Monday Weeklys in the first two days was 4,334 on August 15, and 10,829 on August 16. Institutional investors have told me that the SPX Monday Weeklys could have potential to be very helpful to them in managing their over-the-weekend risk. SPX Weeklys are one of CBOE’s fastest-growing products, with volume in 2015 setting a 10th consecutive annual[...]

  • Market News | Aug 13, 2016, 9:45 PM

    Weekend Review - Volatility Indexes and ETPs - 8/8 - 8/12

    Weekend Review - Volatility Indexes and ETPs - 8/8 - 8/12

    I considered skipping the first chart in this blog since the four S&P 500 related volatility indexes didn't move much last week.  The only thing to note here is that the shorter dated end did rise a bit more than the long end, but the curve remains fairly steep. Despite the fairly quiet week, VVIX rose to the mid-90's.  I'm hearing a mix of reasons which fall into two camps.  One - with steep contango put buyers are coming into the market to take advantage of the futures[...]

  • Market News | Aug 13, 2016, 1:42 PM

    Weekend Review - VIX Options and Futures - 8/8 - 8/12

    Weekend Review - VIX Options and Futures - 8/8 - 8/12

    VIX was higher last week, but on the chart and table below that’s all that moved up.  The entire curve was lower as the steep contango that everyone has been talking about got a little less steep. On Friday, the biggest VIX option trade appears to be expecting VIX to rally sometime in the next few weeks and take the September futures with it.  With spot VIX around 11.50 and the September VIX futures around 15.00 someone came in and purchased the VIX Sep 17 Calls for 1.24[...]

  • Market News | Trader Talk | Trade Ideas | Aug 13, 2016, 7:00 AM

    Weekend Review - Russell 2000 Options and Volatility - 8/8 - 8/12

    Weekend Review - Russell 2000 Options and Volatility - 8/8 - 8/12

    The race between large cap and small cap stocks came down to a photo finish last week as the Russell 1000 (RUI) was up 0.06% while the Russell 2000 (RUT) ended up losing 0.13%.  This slight win for RUI didn’t do much as far as the year to date performance comparison goes as RUT is still ahead of RUI by 1.4% as RUT is up 8.27% in 2016 while RUI is up only 6.87%. The CBOE Russell 2000 Volatility Index (RVX) was lower last week while VIX gained a little.  The result when[...]

  • Market News | Aug 12, 2016, 2:01 PM

    The Weekly Options News Roundup – 8/12/2016

    The Weekly Options News Roundup – 8/12/2016

    The Weekly News Roundup is your weekly recap of CBOE features, options industry news and VIX Index and volatility-related articles from print, broadcast, online and social media outlets. Another Expiration to Trade CBOE’s suite of Weeklys options offerings on the S&P 500 Index (SPX) continues to grow with Wednesday, Friday and now -- Monday -- expirations.  The first series in CBOE’s new SPX Monday Weeklys will be listed tomorrow, Monday, August 15.  Time to get that weekend[...]

  • Market News | Aug 12, 2016, 12:43 PM

    VIX Futures Record Open Interest of 543,192, as VIX Index Hits 2-Year Low

    VIX Futures Record Open Interest of 543,192, as VIX Index Hits 2-Year Low

    On August 5 the CBOE Volatility Index® (VIX®) closed at 11.39 (its lowest daily close in more than two years) and the VIX futures established a new all-time record high open interest of 537,201. On August 9 the VIX Index closed at 11.66, and the VIX futures open interest hit a new all-time record of 543,192.  RELATIONSHIP BETWEEN VIX INDEX AND OPEN INTEREST While many market watchers believe that trading activity often picks up at times when volatility and the VIX Index rise, it[...]

  • Market News | Trader Talk | Trade Ideas | Aug 11, 2016, 5:47 PM

    Earnings Next Week - 8/15 - 8/19

    Earnings Next Week - 8/15 - 8/19

    Next week we start to reach the end of a pretty uneventful earnings season.  The week is dominated by retailers which is always a signal that earnings season is coming to a close.  As always the data below is based on the last three years of earnings results unless the ticker is in italics.  The columns show the biggest rally, biggest drop, average move, and what the stock did last quarter in reaction to earnings.

  • Market News | Trader Talk | Aug 11, 2016, 4:54 PM

    New SPX Monday-Expiring Weeklys Options To Launch on August 15

    New SPX Monday-Expiring Weeklys Options To Launch on August 15

    CBOE plans to list S&P 500® Index (SPX) Monday-expiring Weeklys options, beginning August 15, pending regulatory approval. SPX Weeklys are one of CBOE’s fastest-growing products, with volume in 2015 setting a 10th consecutive annual record. With the expected introduction of SPX “Monday Weeklys,” CBOE will offer SPX options with Monday, Wednesday and Friday expirations. AVAILABLE EXPIRATIONS The table below shows the S&P 500 options expirations (through Sept. 9) that[...]